French carmaker Renault has today clung to its full-year earnings guidance, despite a 6% drop in quarterly revenue blamed on a slump in key emerging markets.
While avoiding a repeat of the profit warnings that have dented peers including Daimler and BMW, Renault also invoked "low visibility" for the rest of the year, sending its shares sharply lower in early Paris trading.
Group revenue fell to €11.48 billion, with the core auto business contributing €10.06 billion, down a steeper 8.4%. Both figures missed analysts' expectations.
Compounding a sales decline in India, Renault suffered from currency and market slumps in Argentina and Turkey and the effect of its withdrawal from Iran.
Registrations plunged by almost a quarter in the sales region encompassing those markets.
But the company reiterated 2018 goals including an increase in group revenue and an operating margin above 6% - playing down the impact of new emissions tests that have led to the withdrawal or suspension of some European models.
"I think we can say we've managed this challenge successfully," Renault's chief financial officer Clotilde Delbos said on a call with analysts.
The new tests "may still impact the business" in the fourth quarter, she cautioned.
The new Worldwide Harmonised Light Vehicle Test (WLTP) became mandatory on September 1, forcing carmakers including Volkswagen and Renault to halt deliveries of some models that had yet to be re-certified.
The deadline triggered a rush of discounted sales in August, followed by a slump in September, with Renault among the most affected.
WLTP disruption has been cited in profit warnings by BMW, Daimler and parts maker Valeo.
Renault said its global registrations rose 2.9% in the quarter, boosted by a new commercial van partnership with China's Brilliance.
Excluding the joint-venture, registrations fell 1.7% globally and 10.4% outside Europe.
Analysts had expected revenue of €12.17 billion at group level and €10.92 billion in automotive excluding the Russian Avtovaz business.
